IBRAHIM QUADRI
Fraud, under-hand dealings and open day robberies have been characterizing the activity of real estate sector in Nigeria especially in Lagos State. Prospective buyers and accommodation seekers are subjected to untold hardship due to fake and quacks who have ventured into the business to defraud the innocent members of the public.
Instances like this include, accommodation seekers in 2019 numbering hundreds with their placards stormed the Lagos State House of Assembly to protest against a particular fraudulent property developer. He was alleged to have collected rents from all the protesters for only 15 units of Studio Rooms at Alapere, Ketu area of the State. One begins to wonder how 15 units rent apartments would cater for more than hundreds applicants?
Another related development was at Golden Park Estate, Sangotedo, Ajah where 140 people paid for 16 rented flats to property developers. These are some of the harrowing experiences of the citizenry in the hands of shylock operators claiming to be real estate practitioners.
As a result of these sharp practices, the Governor of Lagos State, Mr. Babajide Sanwo-Olu came up with a new law through the Lagos State Real Estate Regulatory Authority Bill. The law became operational in February, 2022.
With the new law, Lagos State Real Estate Regulatory Agency (LASRERA) introduces significant changes to the real estate landscape in the State. Hitherto, the sector operated as a department under the ministry of Housing before being upragraded as an agency to function independently.
The agency is to protect and prevent Lagos State residents from falling prey to fraudulent real estate practitioners and to create some important obligations for stakeholders in the real estate sector.must mention that as at today. Despite a total of 1,584 enrollees on LASRERA’s Registration Portal, LASRERA can only boast of 203 registered applicants. This number shows those that are fully registered with their permits to operate issued by the agency. This a far cry going by the array of persons who operate in the State as developers and agents.
Nonetheless, the sector has been plagued with risks and losses which have been critical issues that demand urgent attention. Many of the practitioners especially those into quackery are founding it difficult to get registered in order to perpetuate the dastardly act.
Speaking during the third edition during a Town Hall Meeting organized by LASRERA where hundreds of stakeholders participated on 6th December at Eko Hotel in Lagos. The State Governor, Mr Babajide Sanwo-Olu said the emerging trend of fraudulent practice in the real estate sector called for vigilant among the residents, noting that the State Goverment has put in place measures to curb quackery in the sector.
The Governor who stated this through his Deputy, Dr Kadri Hamzat said the sector could be a floodgate of economic prosperity to the State and stakeholders when potential risks were minimum.
This Year’s edition adopts a Town Hall Meeting on The Lagos Real Estate Emerging Markets-Mitigating Potential Risks, was aimed at ensuring sanity in the sector to restore the State’s Real Estate Environment.
Recall that the review of the Agency’s Law was adopted on Monday, 7th February, 2022, to protect investors/investees against any potential risks and also prosecute individuals / organizations, boost the activities of Real Estate Markets with accredited and licensed Practitioners through lasrera.lagosstate.gov.ng,
Sanwo-Olu said, “The emerging trends and practices in this sector in recent time call for increased vigilance on the part of all genuine practitioners and the government in view of the rate of reported cases of dubious acts by some real estate agents who are taking undue advantage of the market which has become one of the fastest growing in Nigeria and Lagos State in particular as a result of increasing population.
“As a Government, we owe it a duty to safeguard investments of people who may be unaware of some unprofessional practices in the market. The need to restore public confidence to this sector led to the establishment of the Lagos State Real Estate transaction in Lagos State to protect the citizens and investors from the potential risks emerging in the market.”
He added, “The Agency has defined minimum operational standards and guidelines for citizens to abide with. The guidelines provide a comprehensive checklist for the citizens to correctly identify and have competitive list of registered individuals/organizations to avoid doing business with unregistered Real Estate practitioners in the system.
“We can’t talk about risks in the real estate sector without mentioning the violation of principles of transparency and Real Estate Laws. These to a greater extent, are major potential risks in this sector,” the Governor stated.
He however stated LASRERA could not do the job alone considering the huge real estate transaction going on in different parts of the State, saying the need for joint monitoring of this sector to curb quackery and unlicensed operators.
“It is my belief that the Real Estate Market can be floodgate of Economic prosperity to the State and Stakeholders when potential risks are minimum in this sector,” the Governor stated.
The host, Special Adviser to the Governor on Housing, Mrs Toke Benson-Awoyinka noted, “The impersonation in the Real Estate Industry is becoming unethically high and this is seriously contributing to fraudulent proliferation in Real Estate Market which is having negative impact on the reputation of individuals/ organizations including the regulating Agencies of the State Government.
With the theme, “Lagos Real Estate Emerging Markets-Mitigating Potential Risks,” Benson-Awoyinka argued, “This development calls for appropriate regulation, implementation and enforcement of the Real Estate Laws in order to restore sanity into the sector and instil public confidence in the real estate profession and it explains why the Lagos State Real Estate Regulatory Authority – LASRERA is mandated to regulate and register those individuals / organizations who are involved in this Sector.
“As professional/ Stakeholders in Real Estate, I believe that this Market must be rebuilt so that investors/ investees confidence can be restored and to ensure that the State Government’s vision of Making 21st Century Economy, conforms to the international best practices in the Real Estate and not be a Stand-alone in the Market.
“Let us be informed that reviewed Lagos State Mortgage and Property Law at the Lagos State House of Assembly would safeguard development of the Real Estate Sector in Lagos State and will promote Local and International investors/investees confidence with regard to integrity in the Industry.”
With LASRERA positioned by the Lagos Goverment to police real estate sector as a way of sanitizing it to attain its potentials in a bid to make it as the floodgate of economic prosperity, the rescue mission provides avenue for the citizenry and practitioners alike to stay afloat from the current murky waters.
